What is Interest Cover Ratio (ICR)?
ICR is a measure used by lenders to show whether the rental income from a property is enough to cover the mortgage and other costs. ICR ensures that the money you make from renting is sufficient to pay off your loan. Learn more about ICR below.
What is Top Slicing?
Top Slicing is a method used by lenders to help assess mortgage affordability. It involves considering your disposable income (money left after expenses) to fill any gaps if the rental income alone isn’t enough to cover the mortgage payments. This helps borrowers meet the lender’s mortgage affordability criteria by using an applicant’s personal income to supplement the rental income. Learn more about Top Slicing below.